AL BADR ISLAMIC TRUST

The Charity Registration Number is :- 1045362

AL BADR ISLAMIC TRUST

Report and Accounts

31 December 2019


Report and accounts for the year ended 31 December 2019

Contents

Page

Charity information 1

Trustees' Annual Report 1

Statement of Trustees' responsibilities 6

Independent Auditors' Report 7

Funds Statements:-

Statement of Financial Activities 9

Statement of Financial Activities - Prior Year statement 10

Movements in funds 11

Summary of funds 11

Balance sheet 12

Cash flow statement 13

Notes to the accounts 14


Trustees' Annual Report for the year ended 31 December 2019

Reference and administrative details

The charity name.

The legal name of the charity is:- AL BADR ISLAMIC TRUST

Legal structure of the charity

Jamea al Kauthar

The Trustees in office on the date the report was approved were:-

Delay in filling Annual return and accounts for 2019

Objects and activities of the charity

Ashton Road

Mr Huzayfa Wadee

The principal operating address:

Mr Fazl Wadee

LA1 5AJ

Lancaster

The trustees who served as a trustee in the reporting period were as shown above, and there were no

changes during the year, or in the period between the year end and the approval of the accounts.

The trustees requested an extension for the filling obligations due to Covid19. Most of the trustees and

many of the staff and volunteers became ill with Covid and some are still recovering. The request was

accepted and we are grateful for this.

The charity is registered in England & Wales with the Charity Commission in England & Wales

(CCEW) with charity number 1045362

Mr Ziaooddin Satia

The trustees are all individuals.

The charity is also known by its operating name, Jamea Al Kauthar.

The Trustees present their Report and Accounts for the year ended 31 December 2019.

The charity's areas operation and UK charitable registration.

The charity is constituted as an unincorporated charity, established by Trust Deed. The governing

document of the charity is the Trust Deed establishing the charity.

There are no restrictions in the governing documents on the operation of the Charity or on its

investment powers other than those imposed by Charity Law.

To advance education for the public benefit by the provision of Islamic boarding schools and to

advance religion according to the tenets of the Islamic faith

The aim of the charity is to provide an opportunity to study traditional Islamic sciences with secondary

and further education in a safe secure boarding school environment.

1



The main activities undertaken in relation to those purposes during the year.

The short term and longer term aims and objectives.

The main activities undertaken during the year to further the charity's purpose for the

public benefit.

At our schools, we aspire to cultivate morality and inspire our girls and boys to graduate as able,

confident British Muslim citizens and outstanding role models for their communities. To this end, the

graduates of our college not only perform well in the school, they also transfer high standards of moral

and ethical values, principles and standards to their chosen paths within their own communities. The

long term objective is to instil religious Islamic education combined with secular education to enrich the

fabric of tomorrow's society.

The Lancaster centre- Jamea al Kauthar. Established in 1996, we are dedicated to welcoming

students into an academic atmosphere that is spiritually enriching and physically nurturing. We cater

for girls from ages 11 and above, providing an Islamic education as well as high school and sixth form

subjects.

The school places great emphasis on providing an excellent Islamic environment that is conducive to

acquiring a good education whilst catering for a culturally and ethnically diverse student population.

Students are challenged to pursue excellence in a family-like environment, and their welfare and

progression is our highest priority. An extensive pastoral care system ensures that our girls are treated

as important individuals. We are constantly working hard to improve our facilities to deliver a good

education and a memorable student experience.

Jamea Al Kauthar is located in the heart of Lancaster in the UK, and consists of a Victorian four storey,

grade II listed building (formerly The Royal Albert). The main building forms the central

accommodation at the boarding school with separate wings designated for separate boarding houses.

The madrasah and school are situated in two separate buildings, and all three buildings are

surrounded by 20.5 acres of beautiful natural grounds giving a serene setting to relax and enhance the

mind and body.

The Preston Centre- Abrar Academy opened in 2009 is an Independent Secondary College for boys

from the age of 11. We offer a balanced curriculum, encompassing the full time Alimiyyah and Hifz

course combined with the traditional English curriculum.

Jamea at Lancaster and Abrar Academy offers the following subjects at KS3: English, Maths,

Science, ICT, Art, PSHE & Citizenship, Humanities, PE, and Urdu. At GCSE Level, students are

entered for English Language, English Literature, Maths, Combined Science, Religious Studies, Urdu,

ICT and History.

Jamea offers English, Urdu and Maths at AS Level and English, Urdu and RS at A2. Jamea also offers

many level 3 courses, such as BTEC ICT, BTEC Science and BTEC Health & Social Care.

In September 2015, Abrar School in Preston opened its boarding facilities known as Darul ul Uloom

Preston and has now many boarding students. All boarding students benefit from a spiritually uplifting

enviroment that helps them develop spiritually and and as exemplary citizens who greatly contribute to

society.

We have recently expanded our provision for the Muslim community in the north west, with the

purchase of additional facilities in Preston (to add to our expanding Preston centre), and with the

establishment of a places of worship in both Accrington and Blackburn. Many of our newly established

sites aim to provide Islamic education for disadvantaged children from deprived backgrounds.

2



The main achievements and performance of the charity during the year.

This reporting year, Jamea Al Kauthar had the joy of celebrating the graduation ceremony of 27

Aalima and 8 Sanatayn students, whilst in Darul Uloom Preston 5 Aalim students graduated and 8

Hifz students completed their Quran memorisation..

The Trustees are happy to report yet again that the Jamea al Kauthar GCSE 2019 results were

excellent. Students achieved 80% 9-5 in English and Maths, significantly above the national average.

Students performed exceptionally well in English, Science, RS and Urdu and many students achieved

well above the Attainment 8 and Ebacc point score average. Jamea al Kauthar's sixth form students

have also excelled in English and Urdu A levels, producing excellent progress in both.

Abrar Academy in Preston, which serves as a residential and non-residential boys' school, is

continuing to provide secondary education, as well as A level provision for post 16 boys. In 2019 some

of the students completed their GCSE in conjunction with their Islamic curriculum

The difference the charity's performance during the year has made to the beneficiaries

of the charity.

In order to comply with the disclosures required by Section 62A of the Charities Act 2011 as

introduced by the Charities (Protection and Social Investment) Act 2016, the Trustees state that the

Trust does not use professional fundraisers.

The Charity runs Islamic courses along with GCSE and A Level courses, benefitting more than 250

boarding students at the main Lancaster centre. This continues to draw much interest within the

community, with many applicants applying from all over the country and Europe.

In Darul Uloom Preston, boarding provision for boys commenced in September 2015. The number of

boarders is increasing and has reached capacity. The work of Phase 2 is ongoing, which will allow for

an increase in capacity.

The degree to which the achievements and performance during the year have

benefited wider society.

Al Badr Islamic Trust recognises the importance of contributing to the community and community

cohesion. Many of the students that graduate from our schools, go on to work at schools and charities

in their local area. Our students also regularly raise money for local charities and worldwide causes.

The schools work on many initiatives that contribute to society, such as visits to the local old people's

home and donating to local food and clothing banks.

The charity relies on aid from the individual donors, whose support is valued. During the year the

Trustees made special appeal to individual donors for funds to purchase the adjoining property at

Park Campus Moor Park Avenue Preston and for the purchase of an additional building in Blackburn

for the purpose of setting an Islamic education centre. There have been no other fundraising activities.

Fundraising activities during the year.

3



Structure, governance and management of the charity

The methods used to recruit and appoint new charity trustees.

Financial review

The charity's financial position at the end of the year ended 31 December 2019

2019 2018

£ £

108,330 150,761

5,546,213 5,437,883

Restricted Funds 60,000 60,000

Total Funds 5,606,213 5,497,883

Financial review of the position at the reporting date, 31 December 2019 .

Policies on reserves.

Unrestricted Revenue Funds available for the

general purposes of the charity

The financial position of the charity at 31 December 2019 and comparatives for the prior period, as

more fully detailed in the accounts, can be summarised as follows:-

The trustees have the power to appoint new trustees. The board can invite suitable candiates who are

from the local muslim community to serve as Trustees and new trustees will receive induction

training which is tailored to the specific needs of the individual and will always include full training on

organisational policies. There are is no membership structure within the trust.

The charity has three appointed trustees who have overall control and resposibility for policy and major

decision making. Day to day management and responsibilty for implementing policies is carried out by

a full time Managing Trustee Mr Fazl Wadee

The level of cash reserves at any given time is based on the requirement for a full months expenditure

The level of cash liquid reserves changes drastically in the month of January, April and September

when the fees instalment is received from the students. At the end of December the funds will always

be at a low level. The fixed asset pool is fully utilised for charitable purposes. The Trust has a pool of

assets under investment properties that are used to generate cash by way of rental income for

maintaining a regular source of liquid funds. There are no designated funds set aside.

The trustees consider the financial performance by the charity during the year to have been

satisfactory. The pricipal funding of the charity is from parents of students given by way of

contributions fees for their children. Park Campus Moor Park Avenue, Preston PR1 6AS: This

property was acquired and is now being rented by the previous owner and the rental income is

materially contributing to a fixed yearly income that gives the Trust significant source of secured cash

flow benefits.

Net income

4



Going Concern

Availability and adequacy of assets of each of the funds

Plans for the future

Public Benefit

Details of The Auditor

The board of trustees is satisfied that the charity's assets in each fund are available and adequate to

fulfil its obligations in respect of each fund.

When planning the charity activities, the board of Trustees have taken into consideration the

Commissions guidance and the specific guidance on charities for the advancement of religion.

It is charity policy, that when it is necessary to waive fees for services and goods provided to help the

students from poor and disadvantaged families the trust will implement this policy and regard it as

provision of services for public benefit.

Belgrave Court

Ilyas Patel FCCA

Solomon House

PR2 9PL

Member of Chartered Certified Accountants

The trustees have given careful consideration to going concern. The net current asset liabilities is

significantly in deficit, the trustees consider that the Karz Hassana (Interest free loans given for

charitable purposes) are not demanded by the lenders for long periods of time, although legally they

are payable on demand. Historically, these loans have remained fixed and many times converted into

donations.

Covid 19

We have continued to carry out our school activities during the pandemic through digital means and

have taken advantage of the furlough scheme for employees who were unable to work. Our student

numbers have remained stable and we are confident that the pandemic will not have any significant

impact on our operations

We have continued to make improvements to our schools in 2019. At the Lancaster Site, we are

progressing the maintenance work on our pipes and drainage system, as well as making significant

repairs to the roof and guttering. We have made good progress in our ongoing refurbishment of house

kitchens in the boarding building. At our Preston site, we have upgraded our ICT room, along with our

continued general maintenance of the site.

We plan to continue the refurbishment programmes and upgrade the drainage systems at the

Lancaster site.

5



Statement of Trustees' Responsibilities

- select suitable accounting policies and apply them consistently;

- make judgements and estimates that are reasonable and prudent;

- prepare the financial statements on the going concern basis unless it is inappropriate

to presume that the charity will continue in business;

- state whether applicable accounting standards and statements of

recommended practice have been followed, subject to any material

departures disclosed and explained in the financial statements;

Mr Ziaooddin Satia

Date: 25 May 2021

- to prepare the accounts in accordance with United Kingdom Generally Accepted

Accounting Practice (United Kingdom Accounting Standards and applicable law).

The law requires that the trustees must not approve the accounts unless they are satisfied that they

give a true and fair view of the state of affairs of the charity and of the surplus or deficit of the charity

for the year.

Trustee

The Trustees are also responsible for maintaining adequate accounting records which disclose with

reasonable accuracy at any time the financial position of the charity and which are sufficient to show

and explain the charity's transactions and enable them to ensure that the financial statements comply

with regulations made under the Charities Act 2011. They are also responsible for safeguarding the

assets of the charity and hence for taking reasonable steps for the prevention and detection of fraud

and other irregularities.

In particular, charity law requires the Trustees, if they prepare accounts on an accruals basis, to

prepare financial statements for each financial year which give a true and fair view of the state of

affairs of the charity as at the end of the financial year and of the surplus or deficit of the charity. In

preparing those financial statements the Trustees are required to :-

The charity's trustees are responsible for the Report of the Trustees and the financial statements in

accordance with applicable law and UK Accounting Standards (UK Generally Accepted Accounting

Practice.

The charity's trustees are responsible for the preparation of the accounts in accordance with the terms

of the Charities Act 2011 and the Charities (Accounts and Reports) Regulations 2008 and follow the

specific guidance issued by the Charities Commision of England and Wales under FRS 102 SORP

(Statement of Recommended Practice for Accounting and Reporting by Charities).

6

Independent auditor’s report to the Trustees of Al Badr Islamic Trust

Opinion

Basis for opinion

Conclusions relating to going concern

Other Information

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the charity and its environment obtained in the course of the

audit, we have not identified material misstatements in the trustees' report. We have nothing to report in

respect of the following matters in relation to which the Charities Act 2011 requires us to report to you if, in our

opinion:

- adequate accounting records have not been kept, or returns adequate for our audit have not been

received from branches not visited by us; or

- the financial statements are not in agreement with the accounting records and returns; or

- certain disclosures of trustees' remuneration specified by law are not made; or

- we have not received all the information and explanations we require for our audit.

We have audited the financial statements of Al Badr Islamic Trust (the 'charity') for the year ended 31

December 2019 which comprise the Statement of Financial Activities, Balance Sheet, The Cash Flow

Statement, and notes to the financial statements, including significant accounting policies. The financial

reporting framework that has been applied in their preparation is applicable law and United Kingdom

Accounting Standards, including FRS 102 The Financial Reporting Standard applicable in the UK and Republic

of Ireland (United Kingdom Generally Accepted Accounting Practice).

In our opinion, the financial statements:

- give a true and fair view of the state of the charity's affairs as at 31 December 2019 and of its Income

and Expenditure for the year then ended.

- have been properly prepared in accordance with United Kingdom Generally Accepted Accounting

Practice

- have been prepared in accordance with the requirements of the Charities Act 2011.

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and

applicable law. Our responsibilities under those standards are further described in the Auditor's responsibilities

for the audit of the financial statements section of our report. We are independent of the charity in accordance

with the ethical requirements that are relevant to our audit of the financial statements in the UK, including the

FRC's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these

requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our opinion.

In auditing the financial statements, we have concluded that the Trustees use of the going concern basis of

accounting in the preparation of the financial statements is appropriate.

Based on the work we have performed, we have not identified any material uncertainties relating to events or

conditions that, individually or collectively, may cast significant doubt on the Trust's ability to continue as a

going concern for a period of at least twelve months from when the financial statements are authorised for

issue.

The other information comprises the information included in the annual report other than the financial

statements and our auditor's report thereon.

The Trustees are responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and except to the extent otherwise

explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is

to read the other information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be

materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are

required to determine whether this gives rise to a material misstatement in the financial statements themselves.

If, based on the work we have performed, we conclude that there is a material misstatement of this other

information, we are required to report that fact. We have nothing to report in this regard.

7

Responsibilities of trustees

Auditor’s Responsibilities for the audit of the financial statements

Use of our report

Ilyas Patel

(Senior Statutory Auditor)

For and on behalf of Ilyas Patel (Accountants) Ltd

Chartered Certified Accountants

Date: 25 May 2021

As explained more fully in the trustees' responsibilities statement set out on page 6, the trustees are

responsible for the preparation of the financial statements and for being satisfied that they give a true and fair

view, and for such internal control as the trustees determine is necessary to enable the preparation of financial

statements that are free from material misstatement, whether due to fraud or error. In preparing the financial

statements, the trustees are responsible for assessing the charity's ability to continue as a going concern,

disclosing, as applicable, matters related to going concern and using the going concern basis of accounting

unless the trustees either intend to liquidate the charity or to cease operations, or have no realistic alternative

but to do so.

Our objectives are to obtain reasonable assurance about whether the group financial statements as a whole

are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that

includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit

conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists.

Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they

could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

A further description of our responsibilities is available on the Financial Reporting Council's website at

www.frc.org/auditorsresponsibilities. This description forms part of our auditor's report.

This report is made solely to the Trustees of the charity, as a body, in accordance with the requirements of

Section 144 of the Charities Act 2011 and regulations under Section 154 of the Act. Our work has been

undertaken so that we might state to the Trustees those matters we are required to state to them in an

Auditor's Report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

liability or responsibility to anyone other than the Trustees as a body, for our work, for this report or for the

opinions we have formed.

8

Current year Current year Current year Prior Year

Unrestricted

Funds

Restricted

Funds

Total Funds Total Funds

2019 2019 2019 2018

£ £ £ £

Income & Endowments from:

Donations & Legacies A1 261,144 - 261,144 260,164

Charitable activities A2 1,317,857 - 1,317,857 1,353,933

Investments A4 64,984 - 64,984 27,274

Total income 1,643,985 - 1,643,985 1,641,371

Expenditure on:

Charitable activities B2 1,550,655 - 1,550,655 1,520,610

Total expenditure 1,550,655 - 1,550,655 1,520,610

Net gains on investments 15,000 - 15,000 30,000

Net income for the year 108,330 - 108,330 150,761

Net income after transfers 108,330 - 108,330 150,761

108,330 - 108,330 150,761

Reconciliation of funds:-

Total funds brought forward 5,437,883 60,000 5,497,883 5,347,122

Total funds carried forward 5,546,213 60,000 5,606,213 5,497,883

All activities derive from continuing operations

The notes attached on pages 14 to 25 form an integral part of these accounts.

Statement of Financial Activities for the year ended 31 December 2019

AL BADR ISLAMIC TRUST - Statement of Financial Activities for the year ended 31

December 2019

SORP

Ref

Net movement in funds

A Statement of Total Recognised Gains and Losses is included as a primary statement in these accounts.

9


December 2019

Prior Year Prior Year Prior Year

Unrestricted

Funds

Restricted

Funds

Total Funds

2018 2018 2018

£ £ £

Income from:

Donations & Legacies A1 200,164 60,000 260,164

Charitable activities A2 1,353,933 - 1,353,933

Investments A4 27,274 - 27,274

Total income 1,581,371 60,000 1,641,371

Expenditure on:

Charitable activities B2 1,520,610 - 1,520,610

Total expenditure 1,520,610 - 1,520,610

30,000 30,000

Net income for the year 60,761 60,000 120,761

Net income after transfers 90,761 60,000 150,761

90,761 60,000 150,761

Reconciliation of funds:-

Total funds brought forward 5,347,122 - 5,347,122

Total funds carried forward 5,437,883 60,000 5,497,883

All activities derive from continuing operations

A Statement of Total Recognised Gains and Losses is included in these accounts as a separate primary

statement

Net gains on investments

Net movement in funds

AL BADR ISLAMIC TRUST - Analysis of prior year total funds, as required by

paragraph 4.2 of the SORP

SORP

Ref

10


December 2019

2019 2018

£ £

Surplus for the year :-

93,330 120,761

Income from operations before tax in the Statement of Financial Activites 93,330 120,761

Add/(deduct) non income and expenditure items:-

Unrealised gains on investments 15,000 30,000

Net Movement in funds before taxation 108,330 150,761

Funds generated in the year as shown on Statement of Financial Activities 108,330 150,761

2019 2018

£ £

Funds generated in the year as detailed in the SOFA 108,330 150,761

Resources applied on functional fixed assets (2,400) (1,166,454)

Net resources available to fund charitable activities 105,930 (1,015,693)

Movements in revenue and capital funds for the year ended 31 December 2019

Revenue accumulated funds

Unrestricted Restricted Total Last year

Funds Funds Funds Total Funds

2019 2019 2019 2018

£ £ £ £

Accumulated funds brought forward 5,437,883 60,000 5,497,883 5,347,122

108,330 - 108,330 150,761

Closing revenue funds 5,546,213 60,000 5,606,213 5,497,883

Summary of funds Unrestricted Restricted Total Last Year

Funds Funds Funds Total Funds

2019 2019 2019 2018

£ £ £ £

Revenue accumulated funds 5,546,213 60,000 5,606,213 5,497,883


Net excess of income over expenditure from operations before tax

Resources applied in the year ended 31 December 2019 towards fixed assets for

Charity use:-

Statement of Total Recognised Gains and Losses for the year ended 31 December 2019

Recognised gains and losses before transfers

11

NotesSORP

Ref 2019 2018

£ £

Fixed assets A

Tangible assets 9 A2 6,169,590 6,341,247

Investments held as fixed assets 10 A4 810,000 795,000

Total fixed assets 6,979,590 7,136,247

Current assets B

Debtors 11 B2 119,246 145,374

Investments held as current assets 12 B3 150,138 150,138

Cash at bank and in hand B4 14,091 20,404

Total current assets 283,475 315,916

Creditors: amounts falling due

within one year 13 C1 (1,656,852) (1,954,280)

Net current liabilities (1,373,377) (1,638,364)

The total net assets of the charity 5,606,213 5,497,883

Restricted Funds 16 60,000 60,000

Unrestricted Funds

Unrestricted Revenue Funds 16 D3 5,546,213 5,437,883

Total charity funds 5,606,213 5,497,883

Mr Fazl Wadee

Trustee

Approved by the board of trustees on 25 May 2021


The charity is subject to audit under charity legislation, and the report of the Charities Act auditor is on page 8.

The Trustees acknowledge their responsibilities for complying with the requirements of charity legislation with

respect to accounting records and the preparation of accounts.

The total net assets of the charity are funded by the funds of the charity, as follows:-

AL BADR ISLAMIC TRUST - Balance Sheet as at 31 December 2019

12


Cash Flow Statement for the year ended 31 December 2019

2019 2018

£ £

Cash flows from operating activities

Net cash provided by operating activities as shown below 150,290 965,562

Cash flows from investing activities

Other investment income, including rents from investments 64,984 27,274

Proceeds from sale of property, plant and equipment - 1,514

Purchase of property, plant and equipment (2,400) (1,166,454)

Net cash used in investing activities 62,584 (1,137,666)

Cash flows from financing activities

Cash inflows from new borrowings (250,255) 154,300

Net cash provided by /(used in) financing activities (250,255) 154,300

Overall cash used in all activities (37,381) (17,804)

Cash movements

Change in cash and cash equivalents from activities in the

year ended 31 December 2019 (37,381) (17,804)

Cash and cash equivalents at 1 January 2019 15,699 33,503

Change in cash and cash equivalents due to exchange rate movements - -

(21,682) 15,699

Net income as shown in the Statement of Financial Activities 108,330 150,761

Adjustments for :-

Depreciation charges 174,057 170,151

Write downs of investments - -

Net gains on investment assets (15,000) (30,000)

Dividends, interest and rents from investments (64,984) (27,274)

Increase in current asset investments - (110,138)

Decrease/(increase) in debtors 26,128 659,392

Increase/(decrease) in creditors, excluding loans (78,241) 152,670

Net cash provided by operating activities 150,290 965,562

Analysis of cash and cash equivalents

2019 2018

£ £

Cash in hand at for the year ended 31 December 2019 14,091 20,404

Overdrafts facility repayable on demand (35,773) (4,705)

Total cash and cash equivalents (21,682) 15,699

Reconciliation of net income to net cash flow from operating activities

Cash at bank and in hand less overdrafts at 31 December

13


Notes to the Accounts for the year ended 31 December 2019

1 Accounting policies

Policies relating to the production of the accounts.

Basis of preparation and accounting convention

The charity is a public benefit entity.

Tangible fixed assets

Freehold land nil

Buildings 2 % straight line

Plant and machinery, fixtures and vehicles 25 % reducing balance

Debtors

Creditors and provisions

Fund Accounting

Unrestricted funds are available for use at the discretion of the trustees in furtherance of the objectives of the charity.

There are no designated funds set up by the Trustees

Depreciation has been provided at the following rates in order to write off the assets to their anticipated residual value over

their estimated useful lives.

The accounts have been prepared on the accruals basis, under the historical cost convention, and in accordance with the

Financial Reporting Standard 102, and Charities Sorp FRS102 (Effective 1 January 2019) published by Charities

Commission in England and Wales and in accordance with all applicable law and United Kingdom Generally Accepted

Accounting Standards and Practice

Recognition of Income, liabilities and expenditure

In setting our objectives and planning our activities the trustees have given careful consideration to the Charity

Commissions's general guidance on public benefit

Short term creditors are measured at transaction price (which is usually the invoice price). Loans and other financial

liabilities are initially recognised at transaction price.Provisions (ie liabilities of uncertain timing or amount) are recognised

when there is an obligation at the reporting date as a result of a past event, it is probable that economic benefit will be

transferred to settle the obligation and the amount of the obligation can be estimated reliably.

Tangible fixed assets are measured at their original cost value, or subsequent revaluation, or if donated, as described

above. Cost value includes all costs expended in bringing the asset into its intended working condition. Assets under £500

are not capitalised when acquired and if the net book value falls below £500 the amount is written off. All assets that have

been fully depreciated are also removed from the fixed assets valuation

Debtors are measured at their recoverable amounts at the balance sheet date.

A regular annual review of the likelihood of asset impairment is undertaken.

Restricted funds are subjected to restrictions on their expenditure imposed by the donor or through the terms of an appeal

or as implied by law. The Trust has restricted fixed assets funds

Incoming resources are accounted for on a receivable basis except for donations which are accounted for only when

received. The value of services provided by volunteers has not been included.

Resouces expended are recognised in the period in which they are incurred, Resources expended include the attributable

VAT. It comprises those resources expended by the charity in the delivery of its education services for the benefit of its

beneficiaries, mainly children. A liability, and the related expenditure, is recognised when a legal or constructive obligation

exists as a result of a past event, and when it is more likely than not that a transfer of economic benefits will be required in

settlement, and when the amount of the obligation can be measured or reliably estimated.

14


Notes to the Accounts for the year ended 31 December 2019

2 Liability to taxation

3

4 Significance of financial instruments to the charity's position

52019 2018

£ £

Depreciation of owned fixed assets 174,057 170,151

Pension costs 998 -

Auditors' remuneration 1,200 1,200

6 Investment gains

Current year Current year Current year Prior YearUnrestricted

Funds

Restricted

FundsTotal Funds Total Funds

2019 2019 2019 2018

£ £ £ £

Unrealised gains /(losses) and writing down of carrying values

Investment properties - Unrealised 15,000 - 15,000 30,000

Total unrealised gains/(losses) etc 15,000 - 15,000 30,000

The Trustees consider that the charity satisfies the tests set out in Paragraph 1 Schedule 6 of the Finance Act 2010 for

UK corporation tax purposes. Accordingly, the Charity is potentially exempt from taxation in respect of income or capital

gains received within categories covered by chapter 3 part 11 of the Corporation Tax Act 2010 or Section 256 of the

Taxation of Chargeable Gains Act 1992, to the extent that such income or gains are applied exclusively on the specific

charitable objects of the charity and for no other purpose. Value Added Tax is not recoverable by the charity, and is

therefore included in the relevant costs in the Statement of Financial Activities.

The loans under creditors due within one year are loans known as Karze Hassana and loaned by individuals on the basis

that they are repayable on demand and interest free.

Winding up or dissolution of the charity

If upon winding up or dissolution of the charity there remain any assets, after the satisfaction of all debts and liabilities, the

assets represented by the accumulated fund shall be transferred to some other charitable body or bodies having similar

objects to the charity.

The net surplus before tax in the financial year is stated after charging:-

Net surplus before tax in the financial year

15


Notes to the Accounts for the year ended 31 December 20197 Staff costs and emoluments

Salary costs 2019 2018

£ £

Gross Salaries excluding trustees and key management personnel 391,479 352,864

998 -

Total salaries, wages and related costs 392,477 352,864

Numbers of full time employees or full time equivalents 2019 2018

The average number of total staff employed in the year was 52 50

The estimated staff deployed in different activities in the year was:-

Engaged on charitable activities 49 47

Engaged on management and administration 3 3

8 Remuneration and payments to persons connected with the Trustees

2019 2018

£ £

Hamna Wadee 5,274 5,035

Fatema Wadee 9,240 8,348

14,514 13,383

9 Tangible fixed assets

Land and

Buildings

Plant &

Machinery &

Vehicles

Fixtures and

fittingsTotal

£ £ £ £

Cost

At 1 January 2019 7,227,581 612,774 300,826 8,141,181

Additions - 2,400 - 2,400

At 31 December 2019 7,227,581 615,174 300,826 8,143,581

Depreciation

At 1 January 2019 1,005,918 555,493 238,523 1,799,934

Charge for the year 137,552 19,660 16,845 174,057

At 31 December 2019 1,143,470 575,153 255,368 1,973,991

Net book value

At 31 December 2019 6,084,111 40,021 45,458 6,169,590

At 31 December 2018 6,221,663 57,281 62,303 6,341,247

Freehold land at valuation on acquisition not depreciated included above £350,000

There are no inalienable or heritage assets and all assets are used for direct charitable purposes.

The payments to the above are for services to support the activities of the charity and the payment is comparable to other

staff in similar position. The payment is not specifically prohibited by the Trust deeds.

No employees received emoluments (excluding pension costs) in excess of £60,000 per annum.

None of the trustees have received any remuneration from the charity or any related entity, either in the current or prior

year. The details of remuneration paid to persons connected to the trustees are shown in note 8

Employer's operating costs of defined contribution pension schemes

16


Notes to the Accounts for the year ended 31 December 201910 Investments held as fixed assets

Listed

investments

Properties for

rental incomeTotal

£ £ £

Carrying values of investments

At 1 January 2019 - 795,000 795,000

Revaluation at 31 December 2019 - 15,000 15,000

At 31 December 2019 - 810,000 810,000

Analysis between fair value and historical cost

Investments as above held at fair value - 810,000 810,000

Investments as above held at historical cost,

less any write down-

654,459 654,459

11 Debtors2019 2018

£ £

Trade debtors 119,246 145,179

Other debtors - 195

119,246 145,374

12 Investments held as current assets at cost value at 31 December 20192019 2018

at cost £ £

Other investments 150,138 150,138

13 Creditors: amounts falling due within one year 2019 2018

£ £

Karze Hassana loans and bank overdrafts 1,310,905 1,530,092

Trade creditors 341,997 420,338

Accruals 3,950 3,850

1,656,852 1,954,280

The open market valuation was carried out by the Trustees using values that are regarded as minimum prices

below which the Trustees would not accept for disposal given the current market conditions

17


Notes to the Accounts for the year ended 31 December 201914 Income and Expenditure account summary 2019 2018

£ £

At 1 January 2019 5,467,883 5,347,122

Surplus after tax for the year 93,330 120,761

At 31 December 2019 5,561,213 5,467,883

15 Particulars of how particular funds are represented by assets and liabilities

At 31 December 2019 Unrestricted Designated Restricted Total

funds funds funds Funds

£ £ £ £

Tangible Fixed Assets 6,109,590 - 60,000 6,169,590

Investments at valuation:-

Fixed asset investments 810,000 - - 810,000

Current Assets 283,475 283,475

Current Liabilities (1,656,852) - - (1,656,852)

5,546,213 - 60,000 5,606,213

At 1 January 2019 Unrestricted Designated Restricted Total

funds funds funds Funds

£ £ £ £

Tangible Fixed Assets 6,341,247 - - 6,341,247

Investments at valuation:-

Fixed asset investments 795,000 - - 795,000

Current Assets 255,916 - 60,000 315,916

Current Liabilities (1,954,280) - - (1,954,280)

5,437,883 - 60,000 5,497,883

16 Change in total funds over the year as shown in Note 15 , analysed by individual funds

See Note 17

£ £ £ £

Unrestricted and designated funds:--

Total unrestricted and designated funds 5,437,883 108,330 - 5,546,213

Restricted funds:-

Restricted Fixed Asset Funds - - - -

Total charity funds 5,437,883 168,330 - 5,606,213

Movement in

funds in 2019 Transfers

between

funds in 2019

Funds carried

forward to

2020

Funds brought

forward from

2018

18


Notes to the Accounts for the year ended 31 December 201917 Analysis of movements in funds over the year as shown in Note 16

Other

Income Expenditure Gains & Movement

Losses in funds

2019 2019 2019 2019

£ £ £ £

Unrestricted and designated funds:-

Unrestricted Revenue Funds 1,643,985 (1,550,655) 15,000 108,330

Restricted funds:-

Restricted Fixed Asset Funds - - - -

1,643,985 (1,550,655) 15,000 108,330

18

Unrestricted and designated funds:-

Unrestricted Revenue Funds

Restricted asset funds

19 Ultimate controlling party

The charity is under the control of its legal trustees

The purposes for which the funds as detailed in note 16 are held by the charity are:-

These funds are held for the meeting the objectives of the charity, and to

provide reserves for future activities, and , subject to charity legislation, are

free from all restrictions on their use.

These funds are held in accordance with the restrictions placed by the donor

in the land registry documents.

19


Activity analysis of Income and expenditure for the for the year ended 31 December 2019

This analysis is classsified by activity and not by conventional nominal descriptions.

20 Analysis of income by activity

SOFA ref 2019 2018

£ £

Teaching activities 1,241,796 1,281,679

Welfare and accomodation 65,166 63,577

Student support 10,895 8,677

A2 1,317,857 1,353,933

Summary of Total Income, including the items above

Charitable activities A2 1,317,857 1,353,933

Donations & Legacies A1 261,144 260,164

Investment income A4 64,984 27,274

Total income as shown in the SOFA 1,643,985 1,641,371

21 Analysis of charitable expenditure by activity

Direct costs Support

costs

Grant

funding of

activities

Total Total

2019 2019 2019 2019 2018

£ £ £ £ £

Teaching activities

Direct costs 442,114 - - 442,114 418,731

Premises expenses - 287,762 - 287,762 258,997

Administrative overheads - 3,175 - 3,175 2,881

Depreciation - 77,199 - 77,199 68,785

442,114 368,136 - 810,250 749,394


costs

Grant

funding of

activitiesTotal Total

2019 2019 2019 2019 2018

£ £ £ £ £

Welfare and accomodation

Direct costs 125,821 - - 125,821 111,313

Premises expenses - 410,277 - 410,277 466,416


Depreciation - 77,199 - 77,199 68,785

125,821 488,976 - 614,797 656,390

Income from charitable activities

Total Income from charitable activities

Total Teaching activities

Activity

Activity

Total Welfare and accomodation

20


Activity analysis of Income and expenditure for the for the year ended 31 December 2019


costs

Grant

funding of


2019 2019 2019 2019 2018

£ £ £ £ £

Student support

Employee costs not included in direct costs - 1,211 - 1,211 1,240


Professional fees - 19,669 - 19,669 5,955

Depreciation - 20,037 - 20,037 32,683

- 82,844 - 82,844 107,122


costs

Grant

funding of


2019 2019 2019 2019 2018

£ £ £ £ £

Total Teaching activities 442,114 368,136 - 810,250 749,394

Total Welfare and accomodation 125,821 488,976 - 614,797 656,390

Total Student support - 82,844 - 82,844 107,122

-4,717

-4,717 7,704

567,935 944,673 - 1,550,655 1,520,610

The basis of allocation of costs between activities is described under accounting policies

The breakdown of this expenditure by type of spending (ie nominal classification) is detailed in note 30

Analysis of support and governance costs by charitable activities

Governance Depreciation Human Other Total

Activity Resources Overheads

£ £ £ £ £

Teaching activities 77,199 - 290,937 368,136

Welfare and accomodation - 77,199 - 411,777 488,976

Student support 4,717 20,037 1,211 61,596 87,561

Grand Total 4,717 174,435 1,211 764,310 944,673

Total Governance costs as detailed in

Note 29

Total Student support

Summary of charitable costs by

activity

Total charitable expenditure

21


This analysis is classsified by conventional nominal descriptions and not by activity.

23 Donations and Legacies


Unrestricted

Funds

Restricted

Funds


2019 2019 2019 2018

£ £ £ £

Donations and gifts from individuals

261,144 - 261,144 200,164

- - - 60,000261,144 - 261,144 260,164

Total Donations and Legacies 261,144 - 261,144 260,164

24 Income from charitable activities - Trading Activities


Unrestricted

Funds

Restricted

Funds


2019 2019 2019 2018

£ £ £ £

Primary purpose and ancillary trading

1,241,796 - 1,241,796 1,281,679

76,061 - 76,061 72,254

1,317,857 - 1,317,857 1,353,933

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Funds

Restricted


£ £ £ £

2019 2019 2019 2018

Total income from charitable trading 1,317,857 - 1,317,857 1,353,933

Total from charitable activities 1,317,857 - 1,317,857 1,353,933

Sundy income

School fees

Total Primary purpose and ancillary trading

General donations from individuals and

organisations

Detailed analysis of income and expenditure for the year ended 31 December 2019 as required by the SORP 2019

Donation of restricted asset property

Total Income from charitable activities

22



26 Investment income


Funds

Restricted


2019 2019 2019 2018

£ £ £ £

Property Rental Income 64,984 - 64,984 27,274

Total investment income 64,984 - 64,984 27,274

27 Expenditure on charitable activities - Direct spending


Funds

Restricted


2019 2019 2019 2018

£ £ £ £

391,479 - 391,479 352,864

998 - 998 -

49,637 - 49,637 65,867

125,821 - 125,821 111,313

Total direct spending 567,935 - 567,935 530,044

Gross wages and salaries - charitable activities

Defined contribution pension costs - charitable

activities

Catering and food

School expenditure

23



28


Funds

Restricted


2019 2019 2019 2018

£ £ £ £

Employee costs not included in direct costs

1,211 - 1,211 1,240

Premises Expenses

122,516 - 122,516 207,419

208,422 - 208,422 154,888

25,790 - 25,790 21,204

341,311 - 341,311 341,902

Administrative overheads

10,610 - 10,610 7,773

6,350 - 6,350 5,762

9,586 - 9,586 8,000

37,783 - 37,783 27,204

1,500 - 1,500 9,876

935 - 935 1,943

12,242 - 12,242 12,950

3,124 - 3,124 3,069

2,519 - 2,519 1,910

- - - 1,514

Professional fees paid to advisors other than the auditor or examiner

2,900 - 2,900 2,750

16,769 - 16,769 3,205

Financial costs

378 - 378 102

174,057 - 174,057 170,151

Total support costs 978,003 - 978,003 982,862


The basis of allocation of costs between activities is described under accounting policies

Equipment expenses

Telephone, fax and internet

Motor expenses

Bank charges

Light heat and power

Cleaning and waste management

Depreciation & Amortisation in total for the period

Other legal and professional

Loss on disposal

Sundry expenses

School fees waived

Liabilty and contents insurance

Hire of equipment

Website maintenance

Payroll fees and charges

Support costs for charitable activities

Premises repairs, renewals and maintenance

Rates and water charges

Stationery and printing

Accountancy fees other than examination or audit

fees

24



29 Other Expenditure - Governance costs


Funds

Restricted


2019 2019 2019 2018

£ £ £ £

Auditor's fees 1,200 - 1,200 1,200

Ofstead fees 3,517 - 3,517 6,504

Total Governance costs 4,717 - 4,717 7,704

30 Total Charitable expenditure


Funds

Restricted


2019 2019 2019 2018

£ £ £ £

Total direct spending 567,935 - 567,935 530,044


Total Governance costs 4,717 - 4,717 7,704

Total charitable expenditure 1,550,655 - 1,550,655 1,520,610

25

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